The Financial Crimes Enforcement Network released guidance Monday to clarify the rules for exempting businesses from currency transaction reports.
A business that engages in multiple business activities may qualify for a CTR exemption as a nonlisted business if no more than 50% of its annual gross revenue comes from one or more ineligible business activities, the guidance said.
Fincen still requires that a bank maintain material and supporting information that supports its decision to exempt the customer after making a "reasonable determination."
The documentation could include a review of a business customer's audited financial statements, the customer's most recent tax returns, unaudited financial statements or documents related to a bank's lending relationship with the customer, Fincen said. In some cases, the agency said, the bank may visit the customer's place of business to develop a better understanding of the business activities.
